Americas Fuel Availability Outlook 14 May

Bunker demand high in Houston

VLSFO and LSMGO tight in Rio Grande

Deliveries suspended in off Trinidad

IMAGE: Container Ship Niledutch Kudu at the Port of Buenos Aires, Argentina.Getty Images.

North America

Bunker fuel demand in Houston is strong this week, with premiums for all three conventional fuel grades staying elevated.

While the US Gulf continues to experience seasonal fog conditions, port operations are proceeding largely without major weather-related disruptions, a trader tells ENGINE.

Congestion is reported at the port, and prompt availability for all three conventional grades is tight and relatively expensive.

Recommended lead times for HSFO and VLSFO are currently around 8–10 days, while LSMGO availability is comparatively better with lead times of 6–7 days.

In the Galveston Offshore Lightering Area (GOLA), bunker operations are currently underway, although possible delays are expected at the anchorage from late 16 May through 18 May due to high seas exceeding 1.5 metres, a source said.

Deliveries at the anchorage are currently being carried out on a first-come, first-served basis and remain subject to weather conditions.

Sea fog and visibility conditions across key US Gulf Coast ports are forecast to remain mostly low-risk through 20 May. Most ports, including Brownsville, Corpus Christi, Galveston, Port Arthur, New Orleans, and Tampa, are expected to see predominantly low threat conditions for visibility disruptions.

However, brief periods of moderate fog risk are forecast at some locations, such as Freeport, Mobile Bay, and Tampa, particularly during early morning and overnight hours. No major widespread high-threat visibility events are currently indicated across the region.

In the East Coast at the port of New York, bunker demand has held steady this week, with prices largely at par with Houston and occasionally trading at slight premiums to the US Gulf port.

Recommended lead times for HSFO and VLSFO are currently around 5–7 days, while LSMGO can be secured within 3–4 days, a source tells ENGINE.

Weather conditions at the port are somewhat unsettled, with waves expected to range between 1-2 feet. There are also slight chances of thunderstorms and showers tonight, which could lead to higher waves and potentially disrupt operations.

"Suppliers may require standby tugs if conditions are too severe," a trader said.

On the West Coast, bunker fuel demand is good at the ports of Los Angeles and Long Beach, and prompt availability is tight across all fuel grades.

Recommended lead times for HSFO and VLSFO are currently around 8–10 days, and LSMGO can be secured within 5–7 days, a source said.

Latin America and the Caribbean

Panama’s bunker demand is high and fuel availability across the region is generally normal.

In Balboa and Cristobal, HSFO and VLSFO have typically required lead times of 4–7 days over the past week. LSMGO can be delivered within 3–6 days, depending on stem size and delivery port, a source said.

In Colombia, HSFO is no longer widely available. At the ports of Cartagena, Santa Marta and Barranquilla, VLSFO and LSMGO availability is normal, with most suppliers able to deliver both grades within lead times of 4–5 days.

Offshore Trinidad is currently facing bunker delivery suspensions due to strong wind gusts and elevated sea conditions. Rough weather is forecast to persist through 17 May, and prolonged delays are possible, a bunker trader tells ENGINE.

In Brazil, fuel demand has held steady over the past week.

Santos is experiencing congestion, although availability for both VLSFO and LSMGO is okay, with recommended lead times of 5–7 days.

Availability is also normal in Rio de Janeiro, Paranagua, Belem and Vila do Conde, where most deliveries can be arranged within 7 days, a source said.

Rio Grande, however, is seeing tighter availability for both VLSFO and LSMGO, with recommended lead times extending beyond a week.

In Zona Comun, bunker deliveries have resumed and are currently being done on a first-come, first-served basis after being suspended earlier on Wednesday due to rough weather conditions.

Another period of possible disruption is expected at the anchorage location between 16 and 17 May.

Current lead times for VLSFO and LSMGO deliveries via barge are around 7–8 days, a source said.

By Gautamee Hazarika

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